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Essentially the system we have right now assumes anyone new is a terrible credit risk.

No, it assumes that their credit risk is completely unknown and could be either good or bad, not that they are a terrible credit risk.

Under the current system, lenders who want to rely primarily on a single number credit score likely won't be the first lender to approve a new borrower. But what would it look like, if there were a starter score?

For practical purposes, let's call the starter score zero. Yeah, I know that the agencies would pick a positive number, but zero is good number for a thought experiment.

People with more bad stuff than good stuff on their records would have negative scores. People with more good stuff than bad stuff on their records would have positive scores.

I expect we would see a cottage industry develop that claimed to make people with negative scores look like people with no history. If this cottage industry had even partial success, lenders who want to rely primarily on a single number credit score would assume that a score of zero is likely a bad risk.

In other words, nothing much would change. People with no history would still need to find a first lender that is willing to look beyond the score to other factors that might be in the new borrower's favor.

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